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What is fiduciary liability insurance?
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25th Nov 2009 by Amelia Timbers
Fiduciaries, for trusts, foundations or other purposes have legally binding obligations such as a duty of loyalty, a duty of care, etc. They must act in the best interest of the entity a trust is set up for, not harm the trust or fund, etc. If they breach these duties, in some cases fiduciaries can be held legally liable, or responsible, for whatever went wrong. In the case of litigation for a breach of fiduciary duty, a fiduciary may want insurance to cover either legal fees or damages asserted against them. This is the role of fiduciary liability insurance, to protect fiduciaries upon a breach or in litigation.
Fiduciaries, for trusts, foundations or other purposes have legally binding obligations such as a duty of loyalty, a duty of care, etc. They must act in the best interest of the entity a trust is set up for, not harm the trust or fund, etc. If they breach these duties, in some cases fiduciaries can be held legally liable, or responsible, for whatever went wrong. In the case of litigation for a breach of fiduciary duty, a fiduciary may want insurance to cover either legal fees or damages asserted against them. This is the role of fiduciary liability insurance, to protect fiduciaries upon a breach or in litigation.
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23rd Nov 2009 In Insurance
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Subjects: fiduciary liability insurance,